Following the expiration on June 30, 2014 of its Extended Fund Facility (EFF) arrangement, Portugal will engage in post-program monitoring (PPM)1 with the International Monetary Fund (IMF).
The IMF Executive Board adopted the decision on July 30, without a meeting2.
The authorities have not sought a successor arrangement with the Fund upon expiration of the EFF arrangement. As of June 30, 2014, Portugal’s outstanding credit to the Fund was SDR 22.942 billion (2,228.0 percent of quota). In such instances, it is expected that the Fund member will engage in post-program monitoring, and the authorities have indicated their willingness to do so.
The EFF arrangement, which had been approved on May 20, 2011 (see Press Release No. 11/190), was part of a cooperative package of financing with the European Union amounting to €78 billion over three years.
1 The central objective of PPM is to provide for closer monitoring of the policies of members that have substantial Fund credit outstanding following the expiration of their arrangements. Under PPM, members undertake more frequent formal consultation with the Fund than is the case under surveillance, with a particular focus on macroeconomic and structural policies that have a bearing on external viability.
2 The Executive Board agreed that the proposal could be considered without convening formal discussions in line with its lapse-of-time procedure.